Greece Requests 3-Year Bailout Lacking Reform Details

Nigel Thomas
08 Jul, 2015
New York City

Greece formally requested a bailout but the proposal lacked details on reforms as banks are expected to run out of cash as early as tomorrow. CropEnergies said net surged seven-fold but bioethanol maker lowered fiscal revenues outlook. Daejan profit jumped 49% to

[R]4:00 PM Frankfurt – Greece formally requested a bailout but the proposal lacked details on reforms as banks are expected to run out of cash as early as tomorrow. CropEnergies said net surged seven-fold but bioethanol maker lowered fiscal revenues outlook. Daejan profit jumped 49% to £223 million. Micro Focus net plunged 38% to $91 million.[/R]

European markets rebounded on the hopes that Greece and international may work out an agreement by the end of this weekend.

Greece formally asked for a three-year bailout and said it is ready to implement pension and tax reforms as demanded by lenders.

However, the proposal fell short of details and Prime Minister Alexis Tsipras and newly appointed finance minister Euclid Tsakalotos said the list will be provided to lenders before the Thursday mid-night deadline.

Greek banks are expected to run out of cash as early as tomorrow and without the new cash injection from the European Central Bank, Greece will not be able to meet its bond obligation of €3.5 billion on July 20.

Financial markets rose on the news that Greece made a formal request for a bailout.

In London trading, FTSE 100 index gained 0.9% or 62.59 to 6,494.95 and in Frankfurt the DAX index increased 0.9% or 103.43 to 10,774.24.

In Paris, CAC 40 index jumped 1.1% or 53.73 to 4,658.37.

Air France KLM SA gained 2.8% to €6.01 after the after the France and Holland based airline said passengers traffic in June edged up 0.2% to 8.24 million passengers compared to 8.22 million passengers from a year ago month.

Group load factor in the month increased 0.5 percentage points to 87% from 86.5% and available seat-kilometers, jumped to 26.09 billion from 25.85 billion.

Abbey Plc soared 10.7% to 980 pence after the U.K.-based property developer said revenue in the year ending in April soared 51.1% to£172.5 million from £114.2 million in a year ago period.

Net profit in the year climbed 111.7% from a year ago to £39.6 million compared to £18.7 million and diluted earnings per share climbed to 184.02 pence form 87.04 pence.

CropEnergies AG slid 0.2% to €3.82 after the Germany-based bioethanol producer reported revenues in the first-quarter ending in May decreased 5% to €197.77 million from €207.87 million in a year ago period.

Net profit in the quarter surged seven-fold from a year ago to €4.91 million compared to €0.63 million and diluted earnings per share jumped to €0.06 from €0.01.

The company lowered revenue forecast for the year to decline between €675 million and €725 million from €827 million reported in the last year but operating profit to jump in the range of €10 million to €40 million compared to reported €11 million in a year ago period.

Daejan Holdings Plc jumped 4.6% to 6,055 pence after the U.K.-based industrial and residential property developer stated total rental income in the year ending in March climbed 15% to £129 million from £112.2 million in a year ago period.

Net profit in the year jumped 48.5% from a year ago to £223 million compared to £150.2 million and diluted earnings per share increased to £13.68 form £9.19 pence.

The company said in a statement filed with the London Stock Exchange, pretax profit in the year soared 65.3% to £271.9 million on valuation gains on investment property.

Micro Focus International Plc rose 0.6% to 1,377 pence after the software developer reported total revenues in the year ending in April nearly doubled to $834.5 million from $418.1 million in a year ago period.

Net profit in the year plunged 38.2% from a year ago to $91.4 million compared to $147.8 million and diluted earnings per share fell to 56.71 cents from 82.35 cents.